- BofA/Merrill's Wamsi Mohan has downgraded 3D Systems (DDD -5%) all the way to Underperform from Buy, while lowering his PT to $65 from $90.
- Mohan is worried 3D's organic growth rate is peaking, and that "incremental top-line growth will come at the expense of margins." He also views 3D's spending ramp (a major factor behind its recent warning) to be merely "necessary to stay competitive," is worried the company's M&A binge will dilute long-term organic growth, and expects the margin performance of high-profile partnerships with the likes of Motorola Mobility and Hasbro to be "challenged."
- Rivals Stratasys (SSYS -1.4%) and Voxeljet (VJET -2%) are also lower on an up day for equities.
3D Systems hit by BofA downgrade. Stratasys, Voxeljet also off.
Feb 24 2014, 10:32 ET